$TXT
Market Cap:
$15.78 Billion
$TXT Insights BETA
Expenses
- Gross Profit Margin is relatively inconsistent.
- Avg. Gross Profit Margin is ≈15.93%, which is on the low end. This usually indicates it has a lot of competition.
Cost Of Revenues
Gross Profit
Gross Profit Margin
- SGA is relatively inconsistent, which can mean they face intense competition.
- Avg. SGA is ≈51.23%, which is moderate. Ideally, this would be under 30%. If it's closer to 70%, it's on the bad side of the range.
- R&D as % of Gross Profit is 33.0% on average, which is high. There is an inherent risk that the technological advantage the company enjoys will be obsolete at some point in the future.
Selling, General & Admin Expense
Research & Development
No data
Depreciation, Depletion & Amortization
SGA Expense to Gross Profit Ratio
R&D To Gross Profit Ratio
No data
DDA To Gross Profit Ratio
Operating Expenses Total
Operating Profits/Loss
Income/Loss
- The tax rate (Income Tax Paid / Pretax Income) is 16.29% on average, which is well below the 21% corporate tax rate. It might be worth trying to understand what's going on.
- Net Income is relatively inconsistent. When Net Income is inconsistent, it's hard to determine a value of the company you can feel confident in.
- Net Income / Total Revenues is 5.65% on average. It's bad sign when it's below 10%. When comparing with competitors, the company with the highest ratio will likely be the one with the competitive advantage.
- Earnings Per Share is relatively inconsistent. Erratic earnings picture is a red flag that indicates a fiercely competitive industry with lots of booms and busts. During the bust part of the cycle, the stock price might fall significantly after a bad earnings performance. This creates the illusion of a value buying opportunity but it’s not. Also keep in mind if the company has had stock splits or reverse splits.
Pretax Income
Income Tax
Net Profits/Loss
Pretax Income YoY Change
Income Tax Rate
Net Profits/Loss YoY Change
Basic EPS
Net Income To Revenue Ratio
Assets & Liabilities
- Inventory has been pretty consistent. Check if it's rising together with net earnings. If it is, that means the rising inventory is to keep with sales at the appropriate levels. What you don't want to see if wild variation in inventory levels, which would indicate boom & bust cycles.
- Property, Plant and Equipment has been pretty consistent. A stable PPE indicates that the company might not need to continuously reinvest into recreating their products, which might indicate the presence of a competitive advantage.
- Total Assets on average has been really high. This can be a competitive advantage because raising that much cash to compete with the business becomes much harder.
Cash & Short-Term Investments
Cash & Equivalents
Cash To Operating Expenses Ratio
Inventory
Receivables
Total Short-Term Assets
Property, Plant And Equipment
Long-Term Investments
No data
Total Long-Term Assets
Total Assets
Net Income To Total Assets Percentage
Accounts Payable
Short-Term Debt
Long Term Debt Due
Total Short-Term Liabilities
Long-Term Debt
Other Long-Term Liabilities
Total Long-Term Liabilities
Total Liabilities
Short-Term To Long-Term Debt Ratio
Short-Term Assets To Debt Ratio
Long-Term Debt To Net Income Ratio
Ownership
- Return on Shareholders' Equity has been 3.3%, which is low (<10%). If Net Income as percentage of Total Revenue also weak (<10%) or negative, it’s a red flag. If it's strong (>10%), it's a green flag since this indicates that they are returning the earnings to shareholders somehow.